For many people opening a franchise signals the start of a new career. It is seen by many as a safe and secure way for entrepreneurs to start up a new business with less risk, as they are buying into an accomplished business opportunity. A well established brand combined with a tried and tested business model and continual advice and support from the franchisor, ensures franchising is fast becoming a growing industry.
However, there are a number of factors to consider for potential franchisees when looking for their next career. Finding the right franchise for you remains the most important step to having a successful career in the franchising industry.
When researching the various franchise opportunities it is important to consider the following:
- Sector
Franchises are available in most sectors; however it is important to select the franchise opportunity that is right for you. From retail, to letting or cleaning franchises there is something for everyone.
You should choose an area that is of interest so you can enjoy building up the business and have more chance of succeeding.
It is worth noting that if you have family commitments at weekends then a franchise that requires weekend working may not be best for you. Some franchises can offer flexible working. However franchising, no matter what sector you pick, is hard work during the first few years so be prepared to put in long hours.
- Finance
Franchise opportunities have different investment levels, so you will need to consider what finance you have available and if the business is a viable opportunity. You will be able to find out investment levels on franchise websites or within franchise magazines. It is worth noting that as well as the initial investment, you will need working capital to inject in the franchise opportunity when starting out.
The initial fee goes towards the costs of setting up the business and you will then make ongoing payments throughout the period of the franchise agreement. The ongoing payments are usually for products, national marketing, training and ongoing support and are usually based on a percentage of annual turnover or mark-ups on supplies.
Make sure you are aware of what it is going to cost to invest and any borrowings you will have to make. It is necessary to establish if the franchise will be able to support the income you require to fund financial commitments away from the business.
- The brand
Another consideration for potential franchisees is the brand they will be investing in. Does the company have a good reputation? What presence do they have on the high street?
If a company is well known and respected in their area of expertise it is often a good starting point for a new franchisee to build on.
Most franchisors will have a dedicated marketing team who will be able to assist you with the marketing of your business, including advertising, PR, design and POS.
- Training and support
When researching the franchise for you, look at what support you will receive from the franchisor before and after opening. A good franchisor should provide comprehensive support that ensures all franchisees are in a position to succeed from the start.
Cash Generator offers its franchisees a structured and professional programme from a CIPD approved trainer. Whatever their skill set, franchisees are guided through a mixture of academic and vocational training. Support is also offered from the very beginning of the franchise process, with guidance from the property team to help find the right location and the financial department offering franchisees the best advice to put together a solid business plan.
Most franchisors will commence their official training programmes for franchisees once finance and is agreed in principal. At Cash Generator franchisees are invited to head office to start their training and it usually lasts between eight to 12 weeks.
The first weeks consist of a series of courses devised in house on each of Cash Generator’s income streams. It is important that franchisees are able to understand how each of the streams works and the impact it has upon all aspects of the business.
One of the best methods for franchisees to get to grips with the business is to combine the educational side with in store training. With Cash Generator, franchisees do this from the start of their training, and find that they enjoy putting the theory into practice early on. Franchisees visit top performing stores for each income stream to work alongside existing franchisees and employees. The practice in store enables them to understand why that store is particularly successful with that income stream.
The support a franchisor offers shouldn’t stop the moment the franchisee opens for business. It is important that franchisors continue to offer ongoing support and training to franchisees to make sure they assist the franchise in creating the greatest possible success. Franchisees should take advantage of any training opportunities that the franchisor can offer to brush up on their skills, as every business continually evolves and it is essential that franchisees keep up-to-date.
At Cash Generator, franchisees are appointed a regional manager who is continually on hand to help asses, review and improve the store’s performance. We understand exactly what it takes to make your business a success and aim for nothing less. As well as the regional manager, employees at Head Office are also on hand to ensure the franchisees are well positioned to grow their business.
- Get to know your potential franchise
After you’ve considered various franchise opportunities make sure you take the time to get to under the skin of your favourite options. Carry out plenty of research, a good franchisor should have a good website with detailed information about their franchising opportunities. Pick up franchise magazines and read about existing franchisee case studies; they will give you a flavour of the success that is achievable with that particular franchise.
If the franchises already operates in your area visit a store and see if you think it is the right fit for you.
The next step is to meet key personnel to get a better understanding of the business and how it operates. Most franchisors will attend franchise exhibitions which take place across the UK throughout the year, which are essential to attend in the research stages. Take a list of questions to ask them and use the day as an opportunity to find out if you fit with that franchise.
If you still think you’ve found the right franchise take the time to go on an open day with the company. Most will run them at their head offices where you will again get the opportunity to meet key personnel and discuss your potential new business in more detail.
